Argex Titanium Inc. ARGEF

RE:We are moving forward

[stocksports]

Thanks for your thoughts. It is good to see that even in these painful and disappointing time there is someone to keep rational. So the company is not communicating the amount of shares. Strange and not common, but there are some hints on Sedar to get a better picture:

"To finance the first phase of construction of the Company’s first commercially sized TiO2 plant in Valleyfield, Quebec, with a focus on the Front End Engineering and Design (“FEED/FEL3”), engineering associated with long lead items, and for general corporate purposes. "

FEED/FEL3: Based on the NR from 03/04 I assume $10 million. 

General corporate purpose: Based on the last interim consolidated financial statements I assume an adjusted monthly burn rate of roughly $800.000. Having a look on the current corporate presentation (page 9) I assume finalizing FEED/FEL3 in April 2016. So let`s say roughly 12 months to be conservative. In total I calculate about $10 million.

Engineering associated with long lead items: I assume that this position is already included in my gerneral corporate costs based on the interim financial statements.

In total we are talking about a volume of $20 million. (Assumption: 1 USD= 1CAN). To get no shortage of cash I would add another $5 million.

With an equity raise on a $0,37 level we are talking about 68 million shares minimum based on the assumptions above.

That sounds not too bad to get a cheaper financing and a significantly de-risked construction stage.

To balance my thoughts I have to say that the new warrants with a 4 year period to execute on such a low level are annoying. Same with the way of communicating the "new" financing approach. This created uncertainty, which was not necessary, because we are moving forward to production. This is the real message after all the short term pain.